A new circular about the French-Belgian cross-border workers

Within a circular of 3 April 2012, the Belgian tax authorities give further explanations about the status of the cross-border workers. These explanations concern the conditions to fulfil in order to benefit from the status after the 1 January 2012. Information about the "seasonal" cross-border workers is also given.

The tax status of the cross-border workers has been noticeably changed since the additional clause of 12 December 2008 of the convention preventing the French-Belgian double taxation. The conditions and formalities to respect in order to benefit from this "advantageous" tax status have been reinforced. Furthermore, this derogatory status has been deleted, but a transitional period, until 2033, has been foreseen.

The tax authorities already adopted three explanatory circulars as regards cross-border workers (17 December 2009, 27 January 2010 et 21 March 2011) and have just now published a new circular (3 April 2012).

This last circular mentions, on the one hand, the conditions to fulfil in order to keep the benefit from the cross-border status for the period 2012 to 2033: repercussion of a loss of job in 2011 (which does not automatically cause the loss of the cross-border status), situation of the temporary workers, consequences of a change of employer, respect for the annual limitation of 30 days "out of zone", etc.

On the other hand, the specific status of the "seasonal" cross-border workers is clarified, and, for these workers, a new form "276 Front./Grens. S" is foreseen from the 1 January 2012.

Finally, the circular reminds that the employer may lawfully deduct the income tax on wages if he considers that the conditions of the cross-border status are not fulfilled (this attitude may not be systematic). The circular also states that the worker may ask the tax authorities for the income tax on wages that he considers wrongfully deducted (by means of a complaint) and that the employer may, in this case, after refund, submit a "negative" statement of income tax on wages.